"Trumbull's ALOV gets $3900/17.5% from BP"

I wondered when BP would finally show their face in this Great Oil and Gas play.

 

Congrats! to the landowners of Trumbull............me too, I'm one.

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Permalink Reply by June G. Blackwell on March 28, 2012 at 3:22pm

I am not an attorney...just an Ohio landowner who gained some insight on the Trubull County ALOV lease from my personal observation. Everyone that has an interest in this lease should scrutinize it word for word...In the royalty clause it states "A memorandum of the lease shall be recorded upon the signing of this lease" compared to other ALOV leases that state "Neither this lease, nor any memorandum of lease shall be recorded by Lessee until the bonus payment has been received in full by Lessor, which receipt shall be acknowledged by Lessor in writing"

Also, The "Idemity Clause" is missing the "Express Negligence Rule Doctrine," which, according to "Checklist for Negotiating an Oil & Gas Lease" section 16, (see attachment) it is worthless without it. Maybe this only applies to Texas Law...again I'm not an attorney.

Again...this is just from my personal observation, and I thought it should be expressed.

Attachments:
Permalink Reply by Knows-a-little on March 28, 2012 at 3:48pm
As I understand it, eastern trumbull does not offer access to the wet gas zones of the Utica! Say for instance an OG wanted only the wet gas areas and were willing to pay $$$ for it and the other parcels were to be left out. Then, ALOV counters with all of their acres for $$ so as not to leave out the non- wet gas landowners...the Western folks would get something shy of true value for their minerals while, the mineral-less landowners in the east would profit from nothing...doesn't sound fair to me!
Permalink Reply by Finnbear on March 28, 2012 at 4:20pm
The landowners in the east are NOT mineral less. They may only have dry gas but their acreage is not worthless as you have implied. There is a gradual transition from dry to wet and those zone lines are only guesstimates at this point and will likely move again as the play is developed. Until a number of wells are drilled in your county, no one knows exactly which areas are wet gas, dry gas, oil, profitable, or non-profitable. If you only want to lease with others in the wet gas area then you should organize a landowner group with only those landowners having wet gas holdings, assuming you hold research results showing your acreage is definitely wet gas.
Permalink Reply by Amanda on April 1, 2012 at 9:22am

Well said, Finnbear. 

In addition, if you look at the ODNR web site maps, it shows oil under North Eastern Trumbull county all the way up through Ashtabula (aka Point Pleasant).  Not all Eastern Ohio is the same, as Finnbear has stated above.  There's not a clear-cut line that says this is such and that is such. 

Also, there is no definitive research that is public knowledge yet.

Permalink Reply by gary smith on April 1, 2012 at 12:17pm

amanda,and by the looks of those odnr maps itseems crawford in pa and erie too could have liquids.

Permalink Reply by Amanda on April 1, 2012 at 1:43pm

Very true, Gary. 

Permalink Reply by Utica Shale on March 28, 2012 at 5:48pm

Steve,

 Where did the ALOV Group get this information that Eastern Trumbull County does not have Wet Gas? Did BP tell you this? Can you name the source?

 

 Did anyone mention OIL in the Northwest corner of Trumbull County with a gradual transition to a combination Oil + Condensate + NGL's + Methane into the South-East corner of Trumbull County? Does that sound like DRY GAS to you?

 

 Have you looked at a large map to see the direction in which the Drillers are moving to, from Carroll county with 73 well permits and from Columbiana county with 33 well permits? The drillers are advancing towards middle to eastern Trumbull county. Why? For DRY GAS? I think not.

 

 

Permalink Reply by JDM on March 30, 2012 at 11:50am

Anyone that is with the ALOV trumbull group....how do you feel about the lease offer?

Permalink Reply by paleface on March 30, 2012 at 1:13pm

Finnbear I missed that thank you but what does indexed to the producers price index for all commodities mean ?Does that mean its adjusted to what they are selling the products for at the time?

Permalink Reply by ji on March 31, 2012 at 2:03pm

Can anyone tell me what area of Trumbull County the majority of the BP leases will be located in. 84,000 acres is approximately 20% of the county land size. Is it scattered throughout the county or is it concentrated in a particular area of interest. Thanks.

Permalink Reply by Linda A on April 1, 2012 at 9:51am

Where is the acreage located in Trumbull County?  We have a couple acres in Lordstown but live in PA.

Thanks!

Permalink Reply by Amanda on April 1, 2012 at 10:55am

Linda - we are in the North Eastern area of Trumbull county in Kinsman.  I cannot speak for everyone else.  I would assume it's throughout Trumbull cnty.

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